De-Risking Reversed: Hill County's Data Center Retreat, Function Health's $450M Mega-Round, and a $2.2 Billion Dallas Biotech Exit Reshape the Texas Health Tech Map.
August 2026 | Vol. 1, Issue 4
Mapping the intersection of medicine and venture capital across the Texas Triangle.
Executive Summary
If June was about friction, July was about resolution, and reversal. The Hill County data center saga that dominated last issue came to a quiet, decisive end: the county's federal lawsuit was dismissed with prejudice on July 9, closing a 43-day legal fight that saw commissioners repeal the nation-watched moratorium under litigation pressure. For AI infrastructure investors, the episode now reads less as a triumph of local control and more as a cautionary tale about the limits of county authority in Texas.
Meanwhile, Texas healthtech's biggest headlines skewed toward capital concentration rather than volume. Austin's Function Health closed a staggering $450 million growth round from General Catalyst (just eight months after a $298 million Series B) pushing its total raised past $800 million and reinforcing Austin's status as ground zero for consumer-facing preventive health. Dallas delivered the month's largest exit, as Forte Biosciences was acquired by Amsterdam-based Agenx for $2.2 billion. And Houston's medtech engine kept humming with TYBR Health's $30 million Series A to scale its FDA-cleared surgical healing platform.
Macro Signals
Hill County's moratorium dies for good — RCM Hill drops its $100M suit
On July 9, developer RCM Hill LLC filed a Stipulation of Dismissal with Prejudice in the U.S. District Court for the Western District of Texas, officially ending its lawsuit against Hill County over the now-repealed data center moratorium. The case had already forced the county's hand once, commissioners voted unanimously in early June to rescind the one-year construction pause after county counsel warned Texas counties likely lack the "home rule" authority to impose such bans. In its place, Hill County adopted a developer checklist covering water use, traffic, and noise impacts a softer, disclosure-based regime rather than an outright freeze.
The Signal: The dismissal with prejudice means RCM Hill cannot refile the same claims, effectively closing the book on Texas's first, and so far only, county-level data center moratorium. For digital-health and AI-driven diagnostics investors watching the power-and-water bottleneck story, the episode is now a legal precedent rather than an open threat: Texas counties, unlike cities, generally lack zoning authority, and a blunt-instrument moratorium is unlikely to survive a well-resourced legal challenge. The friction hasn't disappeared, it has simply shifted from moratoriums toward procedural leverage (disclosure requirements, ERCOT interconnection timelines, and local checklists). VCs backing energy-tech and water-cooling plays should treat this as a signal that the addressable market is now about compliance infrastructure and grid transparency tools, not about betting on local bans holding up in court.
Function Health's $450 million non-dilutive mega-round
Austin-based Function Health, the consumer lab-testing and imaging membership platform, closed $450 million in growth financing from General Catalyst's Customer Value Fund on July 30, one of CVF's largest deals to date. The financing comes eight months after Function Health secured $298 million in a series B funding round. The lab-testing startup has now raised more than $800 million since its 2023 launch. The company reports more than 500,000 members and over 100 million completed lab tests, and the round follows its acquisitions of Getlabs and SuppCo.
The Signal: This is a structurally different kind of check than a typical Series C. CVF ties capital to customer growth and sales/marketing spend rather than pure equity dilution, and Function's raise reportedly follows a similar approach CVF took with healthcare AI platform Commure. For Texas investors, the deal underscores that the consumer preventive-health category (lab testing, imaging, biomarker tracking) has become a genuine arms race, with Neko Health closing a $700 million Series C at nearly $7 billion valuation the same month and rivals like Prenuvo and Superpower also raising fresh capital. Austin now sits at the center of that fight, and the scale of capital flowing into bundled, membership-based prevention platforms suggests later-stage healthtech dollars are chasing consolidated consumer relationships rather than single-point solutions.
Forte Biosciences' $2.2 billion exit to Agenx
Dallas-based Forte Biosciences was acquired by Amsterdam-based immunology company Agenx for $2.2 billion, adding Forte's lead investigational therapy FB102, a first-in-class anti-CD122 antibody being developed for autoimmune diseases including vitiligo and celiac disease, to Agenx's pipeline.
The Signal: This is the largest single healthcare exit out of North Texas so far in 2026, and it reinforces a pattern this Report has flagged before: global pharma and biotech acquirers are willing to pay premium multiples for Texas-originated, clinically validated immunology and rare-disease assets. For Dallas-area life sciences VCs, a $2.2 billion outcome is a powerful recruiting and fundraising data point. Proof that hard-science, asset-rich bets emerging from the DFW biotech corridor can clear a path to a major strategic exit rather than a drawn-out IPO process
Vensana-backed TYBR Health scales Houston's surgical-healing platform
TYBR Health announced a $30 million Series A financing led by Vensana Capital and Mutual Capital Partners, with participation from Neovate Capital Partners and existing investors, to expand commercial access to its FDA-cleared B3 GEL System, broaden its product indications, and run clinical studies evaluating tissue protection during orthopedic surgery. The Houston-based startup's B3 GEL System is a flowable extracellular matrix hydrogel designed to protect tendons, ligaments, muscles, and surrounding soft tissue while they heal, and the round will fund broader clinical applications and commercialization.
The Signal: Like Secretome's Series A last month, this is another textbook example of Texas medtech VCs backing commercially de-risked, FDA-cleared platforms rather than pre-clinical bets, TYBR's device is already in use across hand, wrist, shoulder, foot and ankle procedures. It also reflects continued out-of-state capital flowing into Houston's Texas Medical Center-adjacent ecosystem, with Minneapolis's Vensana Capital and Cleveland's Mutual Capital Partners co-leading rather than local funds.
May Deal Tracker
| Company | Hub | Stage | Deal Value | Lead / Notable News |
|---|---|---|---|---|
| Function Health | Austin | Growth (Non-Dilutive) | $450.0M | General Catalyst's Customer Value Fund. Follows a $298M Series B closed just eight months earlier; total raised now tops $800M |
| Forte Biosciences | Dallas | Acquisition/Exit | $2.2B | Acquired by Amsterdam-based Agenx to add anti-CD122 antibody FB102 to its immunology pipeline |
| TYBR Health | Houston | Series A | $30.0M | Vensana Capital & Mutual Capital Partners co-lead; funds expansion of FDA-cleared B3 GEL surgical healing system |
| Throne Science | Austin | Series A | $10.0M | Will Ventures leads 13-investor round for AI-powered smart toilet sensor tracking gut health and hydration |
| Hill County / RCM Hill litigation | Statewide (Hill Co.) | Legal resolution | N/A | $100M federal lawsuit dismissed with prejudice on July 9, closing the moratorium dispute |
Seed & Early Stage Rounds
Throne Science (Austin) – Series A, $10 million
The Austin-based maker of an AI-powered toilet sensor closed a $10 million Series A led by Will Ventures, with participation from Emerson Collective, Workshop, LEAD VC, Salt VC, Accomplice, Moxxie, Ventures Together, Symphony, Felix Capital, Cosmic Venture Partners, Offscript, V1.VC, and Morrison Seger. Founded in 2023, the company brings its total fundraising to nearly $18 million. The device attaches to a standard toilet and uses computer vision and AI to analyze bathroom habits, offering personalized insights into digestive health, hydration, and urinary function.
Series A Rounds
TYBR Health (Houston) – $30M Series A
The undisputed medtech heavyweight of the month. Vensana Capital and Mutual Capital Partners co-led the round, with Neovate Capital Partners and existing investors participating, to expand access to the FDA-cleared B3 GEL System and fund clinical studies on tissue protection during orthopedic surgery. Vensana's investment team has previously backed notable medtech exits including Cartiva, Inari Medical, and Ulthera.
Growth / Late-Stage Rounds
Function Health (Austin) – $450M Growth Financing
The financing underscores conviction in Function's vision to fundamentally change how people take ownership of their health, bringing lab testing, imaging, and personalized intelligence into a single platform. The round follows two major Q2 acquisitions — Getlabs, a nationwide mobile blood-draw network, and SuppCo, a dietary supplement tracking platform — complementing its earlier acquisition of Ezra for AI body scans.
Exits & M&A
Forte Biosciences (Dallas) – $2.2 Billion Acquisition by Agenx
Dallas-based Forte Biosciences was acquired by Amsterdam-based Agenx, a global immunology company, adding Forte's lead therapy FB102, a first-in-class anti-CD122 antibody for autoimmune diseases including vitiligo and celiac disease, to Agenx's pipeline. This marks one of the largest Texas biotech exits of 2026 to date.
Hill County / RCM Hill (Statewide) – Litigation Resolution
On July 9, RCM Hill LLC filed a Stipulation of Dismissal with Prejudice in federal court, officially terminating its $100 million lawsuit against Hill County, a case that had lasted just 43 days from filing to the county's moratorium repeal. While not a venture transaction, the resolution removes a major legal overhang for AI-infrastructure and data-center-adjacent investors watching the Texas Triangle.
Regulatory & Institutional Notes
CPRIT prepares for platform overhaul
CPRIT announced on July 8 that it will launch a new Grant Management Platform in August, a unified online system for applying to, managing, and reporting on CPRIT-funded grants, replacing the agency's legacy CARS, P2RMIS, and CGMS systems. Post-award grant management and peer review modules are slated to follow in January 2027. For Texas life sciences founders, the transition is a process story rather than a funding story this month, but it signals CPRIT is investing in its own infrastructure as application volume continues to grow.
Separately, CPRIT's four company-facing programs (SEED, TDDC, TTC, and TNTC) had full applications due July 9, with the agency allocating roughly $70 million annually toward milestone-based company investments. Expect awards from this cycle to surface in the August/September grant announcements.
Upcoming Events
Texas Health Informatics Alliance (THIA) Sixth Annual Conference
When / Where: September 18, 2026 | UT Arlington / DFW Regional Hub
Information: Co-hosted by a coalition of Texas medical schools including UTHealth Houston, UTSW, and UNT, the theme is "From Innovation to Impact: Implementing Trustworthy Health Informatics Across Texas." A hotspot for VCs evaluating B2B hospital infrastructure, clinical AI governance, and digital twins.
2026 iC³ Life Science & Healthcare Innovation Summit
When / Where: September 24–25, 2026 | Loews Arlington Hotel & Convention Center
Information: Hosted by BioNTX, North Texas's premier annual life sciences summit, a major networking hub for institutional lifetech VCs and pharma business development execs.
The 2026 Healthcare Innovation Summit – Houston
When / Where: October 15, 2026 | Intercontinental Houston
Information: A targeted buyer-and-seller summit connecting C-level healthcare executives with the enterprise healthtech startup ecosystem.
MedCity INVEST Digital Health 2026
When / Where: October 29, 2026 | Pegasus Park (Dallas)
Information: One of the premier nationwide digital health investment conferences, held at the heart of Texas's core biotech park, with heavy participation from national corporate venture capital funds.
Sources
RCM Hill, LLC v. Hill County, et al. "Stipulation of Dismissal with Prejudice." U.S. District Court for the Western District of Texas, Waco Division, No. 6:26-cv-00340, 9 July 2026.
Goldenstein, Taylor. "Texas county dropped its data center ban after a $100 million lawsuit. Now the developer has dismissed the case." KWTX, 15 July 2026, www.kwtx.com/2026/07/15/hill-county-dropped-its-data-center-ban-after-100-million-lawsuit-now-developer-has-dismissed-case/.
General Catalyst / Function. "Function Secures $450 Million Growth Financing from General Catalyst's Customer Value Fund (CVF)." PR Newswire, 30 July 2026, www.prnewswire.com/news-releases/function-secures-450-million-growth-financing-from-general-catalysts-customer-value-fund-cvf-302838766.html.
Landi, Heather. "Function Health lands $450M from General Catalyst." Fierce Healthcare, 31 July 2026, www.fiercehealthcare.com/health-tech/function-health-lands-450m-growth-financing-scale-tech-enabled-preventive-health.
Adams, Katie. "Why General Catalyst Is Betting $450M on Function Health's Preventive Care Push." MedCity News, 31 July 2026, medcitynews.com/2026/07/general-catalyst-function-health-funding/.
Bass, Darcy, and Layten Praytor. "Healthcare Briefs: Forte Biosciences Acquired In $2.2 Billion Deal By Amsterdam-based Agenx." D CEO Magazine, 30 July 2026, www.dmagazine.com/healthcare-business/2026/07/healthcare-briefs-forte-biosciences-acquired-in-2-2-billion-deal-by-amsterdam-based-agenx/.
TYBR Health. "TYBR Health Announces $30 Million Series A Financing to Expand Access to the B3 GEL® System." PR Newswire / Newswise, 21 July 2026, www.newswise.com/articles/tybr-health-announces-30-million-series-a-financing-to-expand-access-to-the-b3-gel-system.
InnovationMap. "TYBR raises $30M series A to scale surgical healing gel." Houston InnovationMap, July 2026, houston.innovationmap.com/tybr-health-30m-series-a-2677279203.html.
Throne Science. "Throne Science, Maker of Smart Toilet Sensor, Announces $10 Million Series A Fundraise." Business Wire, 28 July 2026, www.businesswire.com/news/home/20260728282605/en/.
Henrikson, Eric. "Austin startup uses AI-powered toilet camera to track gut health, hydration." KXAN Austin, July 2026, www.kxan.com/news/local/austin/austin-startup-uses-ai-powered-toilet-camera-to-track-gut-health-hydration/.
Cancer Prevention and Research Institute of Texas. "CPRIT to launch a new Grant Management Platform in August." CPRIT News & Events, 8 July 2026, www.cprit.texas.gov/news-events/articles/cprit-to-launch-a-new-grant-management-platform-in-august/.
BW&CO. "CPRIT Funding for AI & Emerging Cancer Technologies." BW&CO Consulting, 2026, www.bwcoconsulting.com/fod/cprit-2026.
K&L Gates. "Facing a Federal Lawsuit, Hill County Repeals Blanket Pause on Data Center Construction, Adopting New Approval Procedures Instead." K&L Gates HUB, 10 June 2026, www.klgates.com/Facing-a-Federal-Lawsuit-Hill-County-Repeals-Blanket-Pause-on-Data-Center-Construction-Adopting-New-Approval-Procedures-Instead-6-10-2026.
Disclaimer: The Givens Health Venture Report is for informational purposes only and does not constitute financial, legal, or investment advice. The views, data, and analysis expressed in this report are entirely independent and not affiliated with, endorsed by, or representative of any of the venture capital firms, corporate entities, state agencies, or healthcare institutions mentioned herein. Past performance or deal trajectory is not indicative of future market results.
